Office Market Prospectus - Wollongong - Invest Wollongong
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Wollongong Office Market Prospectus
Welcome • ‘Avante’ - a newly completed mixed-use
development offering A-grade office space
The Wollongong CBD is undergoing a overlooking the Wollongong CBD (5,500 sqm GFA).
rapid transformation with a significant • ‘Lang’s Corner’ - a landmark A-grade office
number of cranes in the sky and several development offering premium space on the
large office developments either under lower Crown Street Mall (12,733 sqm gross floor
area (GFA), including 11,452 sqm of net lettable
construction or in the pipeline. office space).
As businesses assess the ongoing impacts • The new IMB Bank headquarters at 47 Burelli
of COVID-19, they have an opportunity to Street - an A-grade office development that is
re-examine their business models and already fully committed. (6,695 sqm GFA).
accommodation needs. This additional
supply of A-grade office space means there There is also a further $400M+ of projects in the
is an opportunity for businesses to consider pipeline, including approximately 25,000+ sqm
Wollongong as a legitimate CBD location, of A-grade office space.
whether it be a new satellite office, shared
Wollongong City Council is committed to seeing
services centre or to provide flexible working
our City grow and prosper. Late last year Council
arrangements for staff.
endorsed an updated Economic Development
The availability of new office stock, combined Strategy 2019-29 including an ambitious target
with our large highly skilled talent pool, lower of 10,500 net new jobs by 2028.
staff turnover, and a great work life balance,
This strategy focuses on growing highly skilled,
provides an opportunity for organisations to
professional knowledge-based jobs that tap
consider all that our city has to offer.
into the existing large talent pool. This pool
Prior to the COVID-19 pandemic the Wollongong includes many local residents who commute to
CBD had seen an unprecedented level of roles outside the region and the large number
investment and construction, including $1.6B of of highly skilled graduates coming out of the
investment in recent years. University of Wollongong. In order to achieve this
jobs target, the Wollongong CBD needs more
The Wollongong CBD is seeing an additional high quality office accommodation.
28,000 sqm of A-grade office space under
construction or newly completed, representing I invite you to take a look through the Wollongong
a 36% uplift on current stock levels. Office Market Prospectus to learn more about the
exciting opportunities Wollongong has to offer as
This includes: an alternative office market precinct.
• ‘Gateway on Keira’ - a newly completed We look forward to seeing how Invest
A-grade office development on Keira Street Wollongong can assist you in exploring the
(5,259 sqm GFA). many opportunities that exist in our city.
Lord Mayor Councillor Gordon Bradbery AM
2
Wollongong: an alternative CBD location
There are now exciting and potential game changing office leasing opportunities
in our city.
70% A-grade
office stock 28,000 A-grade office space
under construction 25,000+
A-grade office
space future
UPLIFT pipeline sqm or newly completed sqm pipeline
Wollongong is the perfect location to consider for your business to establish,
through relocation or a new satellite office
Home to a thriving business Superb liveability; where work-life
community balance is real
$
Strategic gateway location, 1 hour from
Lower commercial rents
Sydney and 2.5 hours from Canberra
Commercial/business focused global
Large talent pool of 23,000 daily
university to partner with on research
commuters to Greater Sydney
and commercial projects
$ Up to 33% more cost effective than
Sydney, Melbourne or Parramatta
3
Why your business should Shared Services
Shared services span a broad range of sectors
consider Wollongong of the economy with a focus on providing
support services to large, multi-location
1. A cost effective alternate businesses. Intensive users of technology and
CBD location skilled people, these business functions cover
an array of support services including back
Wollongong is the perfect location to office activities in finance, accounting, HR,
consider for a professional, financial administration operations, call centres,
IT and tech support desks.
and shared services business to
establish, whether it be relocation or a Wollongong is a cost effective shared services
location compared with other CBDs.
new satellite office.
Fifth Quadrant’s analysis of an indicative 150
Research undertaken by Fifth Quadrant found
seat contact centre demonstrated that Sydney
that Wollongong is up to 33% more cost effective
is the most expensive location for a shared
for a shared services operation when compared
services operation with higher cost of salaries,
to Sydney, Melbourne or Parramatta CBD. A key
staff turnover and real estate. This is closely
reason is Wollongong’s lower staff turnover rate
followed by Melbourne and Parramatta.
at only 8%, which is less than half the national
average (19%), translating to lower operating costs. Wollongong is considerably less expensive
with lower salary costs, significantly lower staff
turnover and lower real estate costs, delivering
savings in the range of 28-33% relative to capital
33% 8%
city locations.
Wollongong is up to 33% Wollongong shared
more cost effective than services staff turnover rate
Sydney, Melbourne and is 8%,
2. Large Talent Pool The Illawarra’s Commuter Pool
23,000 skilled commuters Occupation Number of Share of
Commuters total %
A key attraction is the existing large talent pool
White Collar workers 14,189 62.1
available, with 23,000 commuters from the region
travelling to Greater Sydney, including 9,000 Managers 3,272 14.3
Managers and Professionals.
Professionals 5,715 25
Constant flow of talented graduates Community and Personal 2,439 10.7
Service workers
Wollongong’s large talent pool is complemented
by the high number of students and graduates Clerical and Administrative 2,763 12.1
workers
studying at the University of Wollongong.
Currently, there are almost 26,000 students Blue Collar workers 8,291 36.3
studying at the Wollongong campus in subjects
Technicians and Trades 3,642 15.9
as varied as engineering, information sciences, workers
medicine, health, law and business.
Sales workers 1,292 5.7
UOW is ranked in the top 1 percent in the world Machiners Operators and 1,933 8.5
of universities for the quality of graduates in the Drivers
2019 QS Graduate Employability Rankings. Labourers 1,424 6.2
Inadequately described/ 357 1.6
not stated
Total 22,837 100%
96,000 26,000 5,942
Local jobs in Students at Graduated
Wollongong Wollongong in 2019
LGA Campus
23,000 commuters 9,000 Managers
UOW Graduate Numbers to Greater Sydney
each day
and Professionals
commute to Sydney
Undergraduate Postgraduate
Faculty of Business 726 545
Faculty of Engineering 653 589
and Information
Sciences
Faculty of Law, 851 48
Humanities and the Arts
Faculty of Social 632 496
Sciences
Faculty of Science, 829 573
Medicine and Health
Total 3,691 2,251
5
3. Home to a thriving business UOW’s leading research institutions. It includes
iAccelerate, a unique business accelerator and
community and leading incubator program.
commercial brands Tech is also thriving in Wollongong, encouraged
by a supportive business environment,
Wollongong is home to a thriving led by ‘Siligong Valley.’ Siligong Valley is a
business community and leading community of over 1,000 professionals who
commercial brands. It offers an voluntarily arrange meetups and are focused
alternative CBD location to businesses on placing Wollongong on the global tech and
who may not have traditionally entrepreneurial map.
considered the city as an office
market precinct.
The Wollongong CBD is a key employment hub Some of the firms calling Wollongong
supporting over 26,000 jobs - almost a third of home include:
all jobs in Wollongong LGA. The CBD is home to
many sectors including growing professional, Mercer, ATO, IMB Bank, KPMG, Services
financial and shared services sectors. These Australia, NEC, Cardno, EY, Illawarra Credit
businesses are attracted by a large talent pool Union, SES, PeopleCare, GPT, Colliers
of high-quality staff and a lower cost operating International, Australian Health Management,
environment. South32, StatePlus, Community Sector
Banking, iTree, Internetrix, Accorplus, Suncorp,
Our city is also home to the University of Northrop Consulting Engineers, iCare, Accelo,
Wollongong’s Innovation Campus, an award Finocomp, GHD, Stellar, GBST, First State Super,
winning research, technology and commercial Local Government Super.
precinct. This precinct seeks to encourage
innovative organisations to co-locate with
Wollongong: new commercial developments
Gateway on Keira - a newly completed A-grade Avante - a newly completed mixed-use
office development on Keira Street (5,259 sqm development offering A-grade office space
GFA) overlooking the Wollongong CBD (5,500 sqm GFA)
6
Alongside the boom in office developments, 4. Lower commercial rents
the Wollongong CBD is seeing strong demand
for residential living due to its great coastal Leasing quality A-grade office space is more
lifestyle, a thriving arts and music, foodie and affordable in Wollongong when compared with
small bar culture. There have been many new capital city markets.
residential towers constructed in recent years,
Recent rental data for June 2020 shows that for
indicating a strong demand for people to live
prime A-grade pre committed space, leasing
in what is a truly cosmopolitan city. As at July
in the Sydney CBD is around three times more
2020, there were over 1,100 residential units under
expensive than in Wollongong. Secondary Sydney
construction, with a further 700 approved units
markets such as North Sydney and Paramatta are
in the pipeline. This represents a substantial
also comparatively higher cost in both A-grade
uplift in additional residents who will soon call
pre commit and existing A-grade segments.
the Wollongong CBD home.
Wollongong therefore represents a more cost
effective option for either business relocation or
establishment of a new satellite office.
Office Leasing Rates - Sydney v Wollongong
Prime A-grade/pre-commit A-grade B-grade
Wollongong $485 - $530 $400 - $485 $325 - $400
Sydney CBD $1,400 - $1,800 $1,250 - $1,400 $950 - 1,150
North Sydney $1,250 $800 - $1,000 $650 - $800
Parramatta $650+ $550 - $650 $400 - $550
Indicative rates based on Invest Wollongong research, June 2020.
Lang’s Corner - a landmark A-grade office IMB Bank’s new A-grade headquarters on Burelli
development offering premium space on Street (6,695 sqm GFA)
the lower Crown Street Mall (12,733 sqm GFA,
including 11,452 sqm of net lettable office space)
7
Wollongong case studies The new building will be light-filled, diverse
and contemporary, and will provide a
working environment that is modern and
Wollongong is an attractive location to flexible, thereby reinforcing IMB’s culture
establish a new head office or satellite and contributing to IMB’s ability to deliver a
operation for both the public and leading employee experience and enhanced
private sectors. outcomes for its members. IMB Bank’s new
head office is estimated for completion by
IMB Bank Head Office December 2020.
47 Burelli Street Wollongong
IMB Bank is currently in its 140th year of operation
and has been offering banking services to the
Illawarra community since 1880. Currently, they “IMB was formed in Wollongong in 1880 by
employ over 500 staff across a range of banking a group of businessmen who pooled their
and professional services roles. money to help each other build their homes.
The IMB Bank’s new head office at 47 Burelli 140 years on, IMB Bank has members from all
Street is currently under construction. This $45 over Australia, but we remain committed to
million land and building construction investment helping our members reach their financial
re-affirms IMB’s long term commitment to the goals. Our new offices will deliver an
Wollongong CBD. improved employee experience and more
efficient ways to work and collaborate so
The seven story A-grade office building offers a we can achieve our mission to make our
gross floor area of 6,695 sqm (GFA). The building members and communities better.”
boasts a sustainable approach offering many Robert Ryan, Chief Executive, IMB Bank
operating efficiencies.
The design incorporates a range of flexible
work and meeting spaces which, supported by
technology and more innovative, agile ways of
working, will encourage increased collaboration
and productivity.
8
Mercer Administration Services and flexible working, the office will feature
a spacious staff hub on the top floor with
Wollongong: Lang’s Corner panoramic views where colleagues can refresh,
energise and socialise. The new environment will
Mercer, a global leader in redefining also feature seamless wireless connectivity and
the world of work, reshaping retirement smart technology to enable colleagues to work
and investment outcomes, and a effectively.
business of Marsh & McLennan (MMC),
is relocating its Coniston offices to the
Wollongong CBD.
Mercer has announced it will enter into over
a decade-long lease and development
commitment for 5,000 square metres of the “As one of the largest employers in the region, we
historic Lang’s Corner building in the heart recognise our responsibility to the community
of Wollongong. The move supports Mercer’s and we are proud of Mercer’s commitment to
ongoing role in providing regional employment contributing to the transformation and economic
opportunities and will deliver a modernised growth of Wollongong. We have forged excellent
workplace for its colleagues - fit for the future relationships with the business and local
of work. community in the Illawarra and we will continue
to invest in our operations in Wollongong,”
According to Mercer, Lang’s Corner will enable
the consolidation of operations which are Craig Rice, Head of Mercer
currently spread over multiple buildings, with Administration Services
capacity for future growth. The new office will
be outfitted as an MMC Smart Office, enabling
over 500 Mercer colleagues to collaborate under
one modern roof, with anticipated completion in
mid-2022.
Smart Office allows colleagues to find the
workspace that works best for them. In addition
to a mix of spaces designed to support agile
9
Australian Taxation Office
45-53 Kembla Street
Wollongong
Completed in 2013, the ATO’s new
facility on Kembla Street added much
needed A-grade office space to the
Wollongong CBD.
The five storey building, offering large
floorplates over 1,500 sqm (GFA), achieved
new environmental standards at the time
within the Wollongong office market, with a
5.5 star NABERS rating.
Today, the upper floors continue to be
occupied by the ATO on a long term lease,
along with ANZ Business Banking hosting
their corporate and commercial business
banking team for the Illawarra region.
The ATO currently employ 310 staff in the
Wollongong CBD.
NEC Australia workforce in Wollongong and tapped into the
many experienced senior IT professionals and
UOW Innovation Campus executives located within the region along with
the UOW IT graduate pool.
NEC Australia, a leading Australian ICT
solutions and services firm chose to “NEC chose Wollongong due to its combination of
state-of-the art facilities, access to a talent base
locate its newest $25M corporate office provided by University of Wollongong (UOW)
and support centre in Wollongong in student and graduate pool, easy access to
2017 at the University of Wollongong’s Sydney and the wonderful business and lifestyle
Innovation Campus. benefits of the Wollongong location.”
Martin Braithwaite, General Manager,
Today, NEC employs 130 staff and its new NEC Wollongong
corporate office will continue to support major
customers of NEC across the country. NEC
Australia was impressed with the quality of the
10Wollongong office • ‘Lang’s Corner’, a landmark A-grade office
development offering premium space on
leasing opportunities the lower Crown Street Mall (12,733 sqm GFA,
including 11,452 sqm of net lettable office
The unprecedented level of development space). Available mid-2022.
in the Wollongong CBD offers many unique • New IMB Bank headquarters at 47 Burelli Street,
opportunities for businesses considering a re- a new A-grade office development currently
location or the establishment of a satellite office. under construction and fully committed.
There is over 45,000 sqm (GFA) of non- (6,695 sqm GFA).
residential floorspace under development, There is also a future pipeline of projects that
including approximately 28,000 sqm of A-grade have not yet commenced, potentially offering
office space. These include: a further 25,000+ sqm (GFA) of A-grade office
• ‘Gateway on Keira’, a newly completed A-grade space. These include:
office development on Keira Street (5,259 sqm • ‘Kembla Chambers’ an approved 12-storey
GFA). Available late 2020. A-grade office development adjoining to Lang’s
• ‘Avantè’ - a newly completed mixed-use Corner (10,089 sqm GFA).
development offering A-grade office space • 80-82 Market Street, an approved 6-storey
overlooking the Wollongong CBD (5,500 sqm A-grade office development (4,440 sqm GFA)
GFA). Available now.
• 25-27 Denison Street, an approved 7-storey
A-grade office development (11,570 sqm GFA)
11New opportunities Agency:
Gateway on Keira
134-148 Keira Street
Wollongong
Gateway on Keira is a four storey
5,259 sqm (GFA) newly completed
A-grade office development at
134 -148 Keira Street in a prime
CBD location.
Designed to achieve a minimum 5 star
NABERS rating, the building will offer high
quality amenities including two high speed
centrally located lifts with excellent natural
light. Comfortable end of trip facilities will
be available along with secure basement
parking. Available late 2020.
Floorplate Size (NLA):
Large open plan floorplates up to 1,324 sqm
NABERS Rating: 5 Star
Car Parking:
87 with motorbike parking
Access to fibre:
Yes
End of trip facilities:
Bike racks, showers
12Avantè Commercial Floorplate Size (NLA):
Large floorplates of over 1,650 sqm
3 Rawson Street
NABERS Rating: Not rated yet
Wollongong
Car Parking:
Avantè is a state of the art, newly Secured parking (1:52 sqm) for 107 cars
completed development overlooking Access to fibre: Yes
the Wollongong CBD.
End of trip facilities: Yes, at ground level
Avante offers A-grade floorplates (1,650 sqm).
It is strategically located only 100m from the Agency:
absolute city centre, close to the train station
and in a vibrant precinct now the focus of the city!
The building’s future focused design includes a
fully separated commercial building, separate
entry/foyer, dedicated lifts, dedicated air con per
tenancy, power and separate stratum. Flexible
areas are available.
13Lang’s Corner Access to fibre:
Access to fibre, in built coverage digital antenna
101 Crown Street system (IBC DAs), providing mobile coverage to
Wollongong all intended areas
End of trip facilities: Yes
Lang’s Corner is a landmark A-grade
office development on the lower Agency:
Crown Street Mall in the heart of the
Wollongong CBD.
The 11 storey building with a gross floor area of
12,733 sqm, offers ten floors of premium office
space with expansive views and an integrated fit-
out, set above a ground floor shopfront. Currently
under construction, with anticipated occupation
by mid 2022.
Floor Plate Size (NLA):
• Total net lettable office space 11,452 sqm
• Floor plate sizes 900 sqm, 1,000 sqm & 1,671 sqm
with 6,452 sqm still available
NABERS Rating: 5 Star
Car Parking:
• 213 car parking provided
• 130 car parking available
• 10 motorbike parking
• 78 bicycle parking
14Pipeline projects
Kembla Chambers
111-119 Crown Street Wollongong
An adjoining A-grade office
development to Lang’s Corner on the
lower Crown Street Mall in the heart of
the Wollongong CBD.
The 12 storey building with a gross floor area
of 10,089 sqm, offers 11 floors of premium office
space with an integrated fit-out, set above a
ground floor shopfront.
Floor Plate Size (NLA):
Total net lettable area (office) 9,181 sqm
Floor plate sizes 770 sqm, 845 sqm & 1,150 sqm
NABERS Rating: 5 Star
Car Parking:
171 car, 7 motorbike and 65 bicycle spaces
Access to fibre:
Access to fibre, in built coverage
digital antenna system (IBC DAs),
providing mobile coverage
to all intended areas
End of trip facilities: Yes
Agency:
RealCom Property
1580 - 82 Market Street Agency:
Wollongong
A recently approved A-grade office
development at 80-82 Market Street
Wollongong, in the centre of the
Wollongong CBD.
The building will offer 4,440 sqm of gross floor
area over 6 floors, with 4 basement levels.
The proposal includes a café and activation of
adjacent laneway next to the heritage listed
Hotel Illawarra.
Floor Plate Size (NLA):
Typical floorplate of 960 sqm per level
NABERS Rating: 5 Star
Car Parking:
• 65 car spaces over 4 basement areas
• 20 bike storage spaces are available
• Green car sharing spaces
Access to fibre: Yes
End of trip facilities:
Close to all public transport facilities, including
train station and bus stops.
1625-27 Denison Street Car Parking:
• 193 car spaces
Wollongong • 8 motorbike spaces
A seven storey A-grade office Access to fibre: TBC
development at 25-27 Denison Street End of trip facilities:
in the Wollongong CBD, with close • Storage for 74 bicycles
proximity to rail services and the • Separate male and female change
• facilities, including toilet, showers and lockers.
Wollongong health precinct.
The building offers 11,570 sqm of gross floor area Agency:
with all floors offering large floorplate office
space. End of trip facilities will be available, ADM Architects
including bike storage, along with secured car
parking.
Floor Plate Size (NLA):
Total net lettable area: 10,641 sqm
Net lettable area per floor
(these areas exclude amenities):
• Ground Floor: 1,004 sqm
• Level One: 1,628 sqm
• Level 2-5 inclusive: 1,717 sqm (each)
• Level 6: 1,141 sqm
NABERS Rating: 5 Stars
17Existing opportunities Agency:
Level 2, 280 Keira Street
Wollongong
A modern, high quality A-grade office
building within the Wollongong CBD,
directly across from a large city park
with excellent natural light on all sides.
The available space offers a substantial fit out
of up to 130 work stations which can stay or
be removed. End of trip facilities are available,
along with secure parking and a ground floor
café.
Floor Plate Size (NLA):
Large column free floorplates, 500-1,370 sqm
Nabers Rating: 5.5 Star (Base Building)
Car Parking:
Car Spaces 1:70 sqm
Access to fibre: Yes
End of trip facilities: Yes
1883-85 Market Street Agency:
Wollongong
Perfectly positioned within close
proximity to Wollongong’s retail,
commercial and medical precinct and
only a stroll to local cafes, eateries and
public transport facilities.
Fully refurbished office suites with renovations
currently underway offering a quality and
modern fit out, including end of trip facilities and
car parking.
Available second half of 2020.
Floor Plate Size (NLA):
400 sqm floor plates, 5 floors available with a
total of 2,000 sqm
NABERS Rating: 0 Star
Car Parking: 28
Access to fibre: Yes
End of trip facilities:
Bike racks, showers
UOW Innovation Campus Agency:
Squires Way North Wollongong
The Enterprise 1 building is part
of a master planned, award
winning research and technology
precinct located at the University of
Wollongong’s Innovation Campus.
A modern, environmentally-friendly building with
state of the art facilities. Enterprise 1 is one of
Wollongong’s premium A-Grade office buildings.
The building includes access to end of trip
facilities, well presented meeting facilities, café
and recreational areas.
Free shuttle bus connections to the CBD and
only 1 hour from Sydney Airport.
Floor Plate Size (NLA):
Floorplates between 460 sqm - 1,330 sqm available
Nabers Rating: 5 Stars
Car Parking: 30
Access to fibre: Yes
End of trip facilities: Bike racks, showers
19To find out more about Invest Wollongong
visit investwollongong.com.au
email info@investwollongong.com.au
Invest Wollongong Partners
Supported by
©WCC.5000032.20
Date of publication: October 2020.
Invest Wollongong has made every effort to ensure the accuracy of
the information contained in the Wollongong Office Market Prospectus,
having worked closely with property owners and local commercial
agents in the preparation of the document.You can also read
